Q: Can a workers' compensation
claim be fully settled or closed in Iowa?

A: Yes, in Iowa, settlements and lump sum payments of future
benefits are subject to
approval by the Iowa Workers Compensation
Commissioner, and each has
its specific requirements.

The law provides for two general
types of settlement.

First, the parties may enter into an
agreement as to the amount and extent of compensation payments due.
The approval of an agreement
for settlement does not
necessarily end the employee's future rights. A lump sum payment of
all, or part, of remaining future benefits may be obtained. When all
future benefits are paid, all of the employee's future rights to
additional benefits, including medical benefits, will end, fully
closing the claim.

Second, when there is a dispute as
to whether or not the employee is entitled to benefits, a
Compromise
Settlement may be reached.
Approval of a Special Case Settlement ends the employee's future
rights to any benefits, weekly and medical, for the settled injury, condition or disease, thus
fully and finally settling the claim.

Note that a claim does
not need to be in
litigation to be settled by
any of these methods, and that resolving disputes early and, without
litigation, which is often lengthy and expensive, is often to the
benefit of all involved. Also, should you wish to resolve other
potential claims, this can often be done, although, the employer, may
have to contribute additional money to the settlement, as these side
agreements, may not be covered by workers' compensation, or general
liability, insurance.

You should
consult an attorney before discussing any settlement.

Q: What happens to future medical
when a lump sum settlement is reached?

A: Under Iowa's Workers' Compensation Laws, there are
four specific types of settlement. The first type, known as a Compromise Settlement pursuant to §85.35(3) of the Iowa Code, provides
the amount of money received at the time of settlement is the
last money an employee will
ever receive as a result of
this injury.

The second type of settlement,
called an Agreement for
Settlement pursuant to
§85.35(2) and §86.13 of the Iowa Code, leaves
future medical
open. This entitles the
employee, should subsequent medical treatment ever be needed as the
result of this injury, to have those medical expenses paid for by the
employer. Also, the employee may reopen this settlement within 3
years of the last payment of weekly benefits under Iowa law should
there be a significant change in the employee's circumstances
creating an increased disability.

The third type of settlement, called
a Full
Commutation pursuant to
§85.45 & .47 of the Iowa Code, is based on an Agreement for
Settlement as to what is owed, however, closes out all future payments similar to the Special Case Settlement
discussed above. However, the future benefits must be ascertainable
and substantial. The employer pays all the future benefits in one
lump sum at a discount.

The fourth type of settlement,
called a Partial
Commutation pursuant to
§85.48 of the Iowa Code, which is likewise based on an
underlying Agreement for
Settlement as to what is
owed, however, it allows for the payment of a part of the future
benefits in a lump sum. It also gives the employee the opportunity to
reopen this settlement within 3 years from the date of last payment
of weekly benefits and leaves intact the right to lifetime medical benefits.

Various combinations
of types of settlement, as well as settlements contingent on approval
by a Court or governmental agency are also possible.

As currently interpreted by the
Agency, the type of settlement used for injuries occurring on or
after September 7, 2004, may also affect rights to partial
satisfaction of permanent
partial disability on other claims
for injuries occurring on or after September
7, 2004.

You should
consult an attorney before discussing any settlement. (top)